Funding Opportunities to De-Risk Your Company’s Expansion From Canada to Africa
In 2019, Canadian direct investment into Africa reached $10.7 billion. Tempted by serious opportunities, large and mid-sized companies are making inroads to the African continent – especially in the major markets of energy, oil & gas, electricity, and infrastructure.
At our firm, we’re seeing more and more Canadian companies expanding into the African market. Expanding your company into a business environment like Africa is no easy decision, but small and mid-sized firms should feel encouraged to make their move.
You can alleviate much of the stress and uncertainty involved with international expansion by taking advantage of special funding programs available to Canadian businesses.
InfraCo Africa is a UK-based organization offering early-stage and development project financing for companies moving to Africa. With a goal of eliminating poverty, InfraCo mobilizes capital for infrastructure projects through partnerships, seeking equity stakes in each projects as a co-developer.
Development Bank of Southern Africa
The Development Bank of Southern Africa was established in 1983 to aid the country’s economic development in transportation, energy, IT & communication, and water & sanitation.
As a government-owned bank, they offer financing to companies with early-stage and developmental projects to help de-risk expansion into South Africa.
Renewable Energy Performance Platform
The Renewable Energy Performance Platform is a UK government supported program that offers early-stage and development financing to Canadian corporations in Africa. They mainly support private sector investments in small and medium-sized renewable projects in Sub-Sharan Africa.
ElectriFi is a Belgium based organization focused on early-stage and development project financing. Every project they fund has to prove that it can cost-effectively build at least 1,000 new electricity connections. While off-grid electricity solutions get priority access to funding, ElectriFi also finances on-grid solutions.
Facility for Energy Inclusion Off-Grid Energy Access Fund (OGEF)
The OGEF’s goal is to support long-term debt for small-scale renewable energy projects. They offer local-currency debt financing to companies with solar off-grid energy projects. OGEF also offers help with market development and deal structuring.
Inroads to Africa
Every funding program we outlined targets companies that want to de-risk their expansion to Africa. While the majority focus on early-stage and development funding, you should consider which of these funds could best assist your corporation. Learn more about the organizations listed above at the Trade Commissioners website.
If you’re planning an African expansion, we can help you maximize your potential while managing your costs and risks. Contact our office to learn more.